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Region III Central Luzon Environmental Management Bureau and International Center for Environmental Technology Transfer Green Framework of Innovative Strategy (GFIS) for Sustainable Consumption and Production Report March 2008 GFIS Report ACRONYMS BOD Biochemical Oxygen Demand CP Cleaner Production DOE Department of Energy DENR Department of Environment and Natural Resources EE Energy Efficiency EMB Environmental Management Bureau GFIS Green Framework of Innovative Strategy for Sustainable Consumption and Production kWh Kilo-Watt Hour LSFO Low Sulfur Oil METI Ministry of Economy, Trade and Industry MMBFOE Million Barrels of Fuel Equivalent MTOE Metric Tons of Energy MW Megawatt PCO Pollution Control Officer PDP Philippine Development Plan PET Polyethylene Terephthalate Php Philippine Peso SMEs Small and Medium Term Enterprises TWG Technical Working Group WW Wastewater WWTF Wastewater Treatment Facility ICETT-EMB 2 GFIS Report Table of Contents Introduction …………………………………… 7 Profile of Region 3 …………………………………… 14 Environment Quality …………………………………… 19 Sectoral Assessment of Industries …………………………………… 21 Accomplishments …………………………………… 26 Individual Assessment of Industries …………………………………… 34 Conclusion and Recommendation …………………………………… 42 List of Tables Table 1. Region 3 Land Area by Province …………………………………… 14 Table 2. Selected Industries from Region 3 …………………………………… 16 Table 3. Existing Hydropower Plants …………………………………… 17 Table 4. Project Activities …………………………………… 27 Table 5. Measures Implemented …………………………………… 31 by the Industries Table 6. Project Savings …………………………………… 33 List of Figures Figure 1. Location of Central Luzon …………………………………… 14 Figure 2. Supply-Demand Outlook …………………………………… 18 for Luzon List of Annexes Annex A – Individual Action Plans …………………………………… 45 Annex B – Pictures of Activities …………………………………… 67 ICETT-EMB 3 GFIS Report Executive Summary The Green Framework of Innovative Strategy for Sustainable Consumption and Production (GFIS) is a partnership project of the Environmental Management Bureau of the Department of Environment and Natural Resources (EMB – DENR) and the International Center for Environmental Technology Transfer (ICETT), under the guidance of the Ministry of Economy, Trade and Industry (METI), Japan. The project, which has been implemented from June 2007 to March 2008, aims to strengthen the implementation of environmental programs in the Philippines through training and technology transfer. It seeks to improve the performance of industries in the area of cleaner production (CP) and energy efficiency (EE) towards the reduction of carbon dioxide (CO2) emissions. The implementation of the project has been focused primarily in Region 3, one of the most highly urbanized regions in the country, where numerous small and medium enterprises (SMEs) are located and therefore has the potential to generate a lot of waste and pollutants to the environment. Fifteen (pilot) industries from different sectors namely: livestock, meat processing, textile, power, pulp and paper, feed mill and others (tire manufacturing company) have been selected to implement measures and activities geared towards cleaner production and energy efficiency. A series of workshops were conducted to provide information, training and guidance for the industries throughout the project. The assistance of ICETT Japanese and local experts, and the sharing of experiences among participants, enabled the industries to generate individual action plans which served as the basis for the project monitoring from September 2007 to January 2008. A mid-evaluation of the project was conducted and a presentation of the project’s initial results/ outputs including issues, concerns, and difficulties encountered during the project implementation took place last November 2007 in the presence of the ICETT – METI counterparts at the Richmonde Hotel. Only few issues and concerns were identified by the industries. These were top management commitment to take the risk of implementing activities that will generate savings, lack of measuring equipment to compute for the savings and timing of the pilot implementation (June 2007), which does not coincide with planning ICETT-EMB 4 GFIS Report and budget approvals (December 2006) of the companies. Despite the mentioned difficulties, initial outcomes for the industries were already rewarding. Three industries namely, Pampanga’s Best (meat processing), Villa Aida Farm (livestock), and Rural Industrial Corporation (pulp and paper) were made to present their activities and savings from power, water, fuel and waste management. For a limited period of six months (August 2007 – January 2008), the fifteen industries were able to generate a remarkable savings of Php 19 million with an equivalent carbon dioxide emission of 2,050,873.99 kg. It should be noted that the savings generated by some of the companies were not actualized for a full period of six months. Some of the companies only purchased measuring equipments after the first workshop and some savings were only made during the months of October to January. The savings were generated from power, water, fuel and waste management practices. The activities undertaken involved the implementation of high-end technologies such as the use of economizers (heat recovery equipment), practical and low cost measures, and simple good housekeeping. The presentation of the final outcomes of the project, industry activities and the corresponding savings were witnessed through a dissemination workshop by the highest local government official in Region 3 Governor Eddie Panlilio; Angeles Councilor Ricardo Zalamea; DENR top executives Regional Executive Director Regidor de Leon and EMB Director Julian Amador; industry sectors’ Chief Executives, pollution control officers and participants. The project is a success and a rewarding achievement not only for EMB and ICETT, but also for Region 3 as a whole. The direct beneficiaries are both the industries and the government. The project has provided industries of savings and income, the government of improved environmental performance of industries, and the public of safety, health and conserved resources. The project can be expanded further to other industry sectors in Region 3 like cement, sugar mills, etc., and other sectors like tanneries, which has been pinpointed as one of the main sources of pollution in the Marilao River, a critical concern in the country today. Furthermore, the project can be replicated in other regions, as it was initially presented to Region 4 last February 2008. From the industry sector, CP and EE programs can be extended to the local communities, up to the barangay level towards the establishment of an “ecoville”, ICETT-EMB 5 GFIS Report where all stakeholders in a community – government, industry or business group, non- government, academe, and communities are working together to create a community that is environment – friendly. On the part of the EMB, it should not be strictly regulatory but should work together with the industries and continue to provide technical assistance for the industries’ continuing enhanced environmental performance. As for ICETT, aside from the financial assistance, it will be most beneficial to provide more capacity trainings – to enhance the understanding of CP and EE programs, environmental technologies and counter measures, site visits or exposure trips to “ecotowns” or “ecovilles” in Japan to deepen the understanding of this concept for the involved industries and government personnel. ICETT-EMB 6 GFIS Report I. Introduction The International Center for Environmental Technology Transfer under the guidance of the Ministry of Economy, Trade and Industry (METI), partnered with DENR-EMB to implement the project Green Framework of Innovative Strategy (GFIS) for Sustainable Consumption and Production. The project aims to improve environmental (energy) performance of industries in the Philippines, particularly in Region 3, and implement cleaner production and energy efficiency towards the reduction of carbon dioxide emissions (CO2). Moreover, the project aims to provide policy recommendations to help strengthen and further develop environmental management in the Philippines. The ICETT-METI project assistance is an eight-month project expected to produce and implement industry action plans for a short term and long term period. The long term objective of the project is to be able to replicate the cleaner production (CP) and energy efficient (EE) efforts in an area in Region 3 for the establishment of an “ecoville”. The concept of an ecoville is focused on creating a built up comprehensive system that is in harmony with the environment – bringing together industries, national and local governments, the community and other stakeholders to adopt ways and approaches focused on energy conservation, material development and integrated waste management. In view of this, fifteen voluntary companies have partaken in the project. ICETT and EMB have provided the necessary technical assistance and monitoring to help the industries improve their performances in the areas of cleaner production and energy efficiency. A series of workshops have been conducted for the implementation of the project. The first workshop has been conducted to build awareness and capacity building to EMB regional personnel and industries. A dissemination workshop has also been carried out to assess the efforts undertaken by industries during the 5-month implementation of their respective action plans, as well as to present success stories and lessons
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